Real Good Food, the bakery ingredients group, has declared itself “very satisfied” with the start of its new financial year – despite revenue being down.

At its annual general meeting this morning, the company provided a trading update and said that it was seeing good ebitda growth at its recently acquired Rainbow Dust colours business. Executive chairman Pieter Totté said the company was looking forward to the key autumn and Christmas trading period “with confidence”.

AIM-listed Real Good Food added that total group revenue was currently down on a like-for-like annual basis.

However, Totté added: “This is entirely attributable to continued commodity price deflation, particularly in both the dairy and sugar markets, which affected our Garretts Ingredients subsidiary.

“Despite this, the three-pillar business strategy we announced at the time of our year-end results is working well and overall trading for the group is currently in line with market expectations.”

In August the company revealed it had made an operating loss of £741,000 last year after it was hit hard following a dispute over sugar. The company disposed of its sugar division Napier Brown for £34m just after the end of its financial year, but said its performance for the 12 months to 31 March 2015 had been “dominated by the market issues in sugar”.